Industrywide Issues

Economic Impact | Energy Services | Industrywide Issues | M&A | Pennsylvania | Statewide PA | UIL Holdings

Phila. Gas Works Deal in Jeopardy Due to Vacationing City Council
June 20, 2014June 20, 2014

In March, the Democrat mayor of Philadelphia, Michael Nutter, announced a deal to sell the city-owned Philadelphia Gas Works (PGW) for $1.86 billion (see Phila. Gas Works Deal for $1.86B – Marcellus/Utica One of Keys). UIL Holdings Corporation, a Connecticut-based investor-owned gas and electric utility, is the potential buyer. However, it didn’t take long for the union and a former Enron executive to make a play to screw the deal (see Former Enron Exec Makes “Unethical” Play to Derail PGW Deal). City Council has had three months to review the deal put together by Nutter, but now they’re heading out of town on summer vacation and not coming back until September. Will UIL stick around that long?…
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Industrywide Issues | Pennsylvania | Statewide PA | Taxation

RINO Introduces 4.9% Severance Tax Bill in PA House
June 20, 2014June 20, 2014

A Republican in Name Only (RINO) in the PA House, Gene DiGirolamo (greater Philadelphia area), yesterday introduced House Bill 2358 that would make it legal for the state to steal money from a single industry and give it away to groups of people who didn’t earn it. It’s called a severance tax and the money raised from such a tax would be used for anything and everything but the impacts that happen from mining natural gas and oil. The arrogant DiGirolamo is all proud of himself for introducing this abomination…
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Anti-Drilling/Fossil Fuel | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Tennessee Gas Pipeline

Lib MA Town Tells Tenn. Gas Pipeline: Stay Outta Town!
June 20, 2014June 20, 2014

Taking the law into his own hands, as fascist liberals typically do, Andover, MA Town Manager Reginald “Buzz” Stapczynski sent a letter to officials at the Tennessee Gas Pipeline telling them to keep their people the h— outta town–at least that was the sentiment expressed. Such nice, tolerant, peaceful people those anti-drilling libs, aren’t they? Just lovers of all mankind, willing to listen to any harebrained viewpoint–until it’s a viewpoint that doesn’t match theirs. Then the baseball bats come out…
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Hydraulic Fracturing | Industrywide Issues

The Sinister Link Between Fracking and Ice Cream
June 20, 2014June 20, 2014

Hey it’s Friday and time to cut loose a little more than normal here at MDN. Anti-drillers float a boatload of made-up, cockamamie reasons to oppose shale drilling for natural gas and oil. Their philosophy is to issue an ongoing torrent of false charges–fling it all against the wall and see what sticks. However, we’ve finally discovered one reason (overlooked by the antis) that may indeed have some merit. Ice cream. As in, shale drilling leads to high prices for your favorite summer desert. How?…
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American Energy Partners | Chesapeake Energy | Energy Companies | Industrywide Issues | Pipelines | Processing Plants

Aubrey McClendon Gets Back into the Midstream Business
June 19, 2014June 19, 2014

Is Aubrey McClendon getting the band back together again? That is, is he re-creating Chesapeake Energy under the name of American Energy Partners? Perhaps! Yesterday McClendon’s AEP announced that AEP and their major backer Energy & Minerals Group (EMG) are forming a midstream subsidiary called American Energy – Midstream which will invest in pipelines and processing plants in those regions where AEP has active drilling operations–namely the Utica and Marcellus Shale…
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Energy Companies | Industrywide Issues | Pipelines | Processing Plants | Shell | Shell Midstream Partners

Shell Files IPO to Spin Off Midstream/Pipelines into MLP
June 19, 2014June 19, 2014

While Aubrey McClendon and his financial partner EMG are getting back into the midstream/pipeline business (see today’s story about getting the band back together), Royal Dutch Shell is getting out of the midstream business. Well, not exactly getting out–but Shell announced yesterday that the company has filed paperwork with the Securities and Exchange Commission to create a pipeline subsidiary called Shell Midstream Partners. The new company would have a master limited partnership (MLP) structure, which floats something akin to, but different from, shares of stock. They’re called units and the reason for spinning it out as a separate company under the MLP banner is tax-related. According to the paperwork Shell has filed, they anticipate raising up to $750 million in unit sales. Will Shell, via this new subsidiary, own any pipelines in the Marcellus/Utica?…
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Accidents | Carrizo Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Wyoming County (PA)

PA DEP Fines Carrizo $192K for 2 Incidents in Wyoming County
June 19, 2014June 19, 2014

In Mach 2013 Carrizo Oil & Gas was fracking a Marcellus Shale well in Wyoming County, PA when they lost control of the well and wastewater and brine started coming out of the well faster than they could handle it–about 800 gallons a minute. Eventually about 200,000 gallons of wastewater and brine overflowed at the site (see Carrizo Problem Fracking NE PA Well, Evacuates 3 Nearby Families). About a month later, after investigating the damage, the state Dept. of Environmental Protection (DEP) allowed Carrizo to resume their fracking and drilling operations in that area (see Carrizo Resumes Fracking at Site of Spill in Wyoming County, PA). It’s now more than a year later and the DEP has just handed Carrizo a $192,044 fine for failing to keep control of the well, which resulted “in environmental degradation and the evacuation of citizens from their homes.” The fine also covers a second, much smaller incident that happened in April 2013…
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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Regulation | Washington County

Court Says Range Resources Must Disclose Chemicals in SW PA
June 19, 2014June 19, 2014

Three families who live near a former drill site and frack wastewater impoundment at the Yeager Marcellus Shale site in Washington County, PA sued Range Resources in May 2012 claiming the air they breathe and the water they drink had been contaminated by Range’s operation at the site (see EPA Investigating Range Drill Site in Western PA). Litigation ensued, and years passed. In November of last year, County Judge Debbie O’Dell Seneca gave Range and its contractors 30 days to cough up a list of all the chemicals ever used at the site, right down to the kind of oil used in the engines of vehicles visiting the site (see PA Judge Forces Range, Contractors to Provide Chemical List). That didn’t happen because Range appealed. Last week Range lost the appeal…
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Housing | Industrywide Issues | Pennsylvania | Regulation | Washington County

Washington, PA Votes to Reject Marcellus Boarding House
June 19, 2014June 19, 2014

You might think local politicians would be more than happy when someone buys a run down dump of a property with plans to turn it into nice housing. Such a plan would put it back on the tax roles, provide a shot of economic stimulus into the local economy, and help out the area’s strained rental property capacity. But if that housing will cater to Marcellus Shale workers and if you’re anti-drilling, as the politicians around the city of Washington, PA are, well then, you might just get your knickers in a twist (see Washington, PA Officials Try to Stop Marcellus Boarding House). Last month the owner of Phive Starr Properties had the temerity to tell Washington officials that their zoning rules have some big holes in them. Last night the board voted 3-2 to tell Phive Starr “Nah, we don’t have no holes, go away,” in so many words…
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Energy Services | Industrywide Issues | Ohio | Pipelines | Rockies Express Pipeline | Statewide OH

Rockies Express Pipeline Reverses Flow from Utica to Midwest
June 19, 2014June 19, 2014

Nearly a year ago MDN tipped you off that the Rockies Express (REX) Pipeline would reverse at least part of its flow and start sending natural gas from the Utica/Marcellus to the Midwest (see REX Reverses Pipeline Flow from OH for Mystery Utica Customer). That momentous day has arrived. As of today, a new 14.3-mile lateral is flowing gas north from the MarkWest Seneca natural gas processing plant to the REX mainline, where a newly built compressor station will allow the gas to be delivered to points west in Ohio, Indiana, and Illinois. Eventually the gas may also go to Missouri…
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Energy Services | Fluid Delivery Solutions (FDS) | Industrywide Issues | M&A | Supply Chain

Fluid Delivery Solutions Gets New Owner: Trilantic Capital
June 19, 2014June 19, 2014

Fluid Delivery Solutions LLC (FDS) is an oilfield water management company primarily delivering and storing fresh water to drillers in major shale plays, including the Marcellus and Utica. Yesterday FDS announced they have a new owner: Trilantic Capital Partners, a global private equity firm. The amount of the financial transaction was not disclosed. However, FDS current CEO Dan Dunkelberg and his existing management team will remain at the helm of FDS. So why sell?…
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Anti-Drilling/Fossil Fuel | Industrywide Issues | Pennsylvania | Statewide PA

Grrr: Some Marcellus Industry Companies $upport PA Dem for Gov
June 18, 2014June 18, 2014

This is one of those stories that personally makes MDN editor Jim Willis very angry. We learn from an article in the Harrisburg Patriot-News, and from the odious anti-drilling group Food & Water Watch, that some of our own have given money–upwards of a quarter of a million dollars–to PA gubernatorial candidate Tom Wolf. That just should not be. Wolf and his Democrat party will royally screw Marcellus drilling in Pennsylvania if they seize power in the next election. Enabling that outcome is the height of selfishness on the part of those companies and individuals contributing to his campaign. So let’s name some names of those who are donating to Wolf…
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Industrywide Issues | New York | Regulation | Statewide NY

Geologists Finally Get Some “Professional” Respect in NY
June 18, 2014June 18, 2014

It’s taken nearly 20 years, but finally this week a bill has passed both the New York State Assembly and Senate, and will almost certainly be signed by man-child Gov. Andy Cuomo, that recognizes “geologist” as a professional occupation (complete with state licensure requirements) on the same order as engineers, surveyors, etc. That is, “geologist” in NY has now received status as a “professional” occupation…
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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

JLCNY “Outraged” by NY Assembly Democrat Moratorium Bill
June 18, 2014June 18, 2014

Yesterday MDN told you about the third time in as many years that New York City Democrats have attempted to pass an ongoing moratorium (really a ban) on Marcellus Shale drilling in the state (see NY Assembly Once Again Passes Frack Moratorium Bill (Yawn)). The Dems are lead (by the nose) by Assembly Speaker Sheldon “sleazy” Silver and his henchman on the Environmental Conservation Committee Robert Sweeney. Disgusting politicians both. Yesterday afternoon MDN received a statement from the 70,000 member Joint Landowners Coalition of New York stating they are “outraged at the continued attempts by the New York State Assembly to stall safe, responsible natural gas development.” Indeed they should be…
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Education | Industrywide Issues | Jobs | Statewide WV | West Virginia

2 Dozen Drilling Techs from WV Program Now Make $70K/Year!
June 18, 2014June 18, 2014

Want a good job that pays big money but don’t want to “waste time” on an engineering degree? Listen up! West Virginia’s Community and Technical College Chancellor Jim Skidmore recently told state lawmakers that a program offered at two community colleges–Pierpont Community and Technical College in Fairmont and West Virginia Northern Community College in Wheeling–has just graduated two dozen students. Each student received a certificate or associates degree, and each student got a job making an average $70,000 per year to start. Has that got your attention?…
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Hydraulic Fracturing | Industrywide Issues | Research

June DPR from EIA: Marcellus Production Continues to Climb
June 18, 2014June 18, 2014

The latest Drilling Productivity Report (full copy embedded below) from the U.S. Energy Information Administration shows that natural gas production in the Marcellus Shale continues to dwarf all of the other major shale plays in the United States. The Marcellus Shale is expected to produce 14.9 billion cubic feel per day in July. The Eagle Ford Shale will produce around 7.1 billion cubic feet per day in July, according to the report. Below we have the full report along with a couple of tables from the EIA not included in the report (but important)…
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